Close The Australian sharemarket lost $45 billion in value today as investors dumped shares across the board on concerns that the global economy may slide back into a recession.
At the close, the benchmark S&P/ASX200 index was down 149.3 points, or 3.5 per cent, at 4101.9, sliding 1.7 per cent over the week. The broader All Ordinaries index slumped 147.5 points, or 3.4 per cent, to 4171.9.
Energy stocks led the day's losses, down 4.7 per cent after a plunge in the oil price, while materials and financials dropped 3.8 per cent and 3.6 per cent respectively. Gold was the only sector to buck the trend, rising 1.3 per cent, buoyed by a fresh record in the price for the yellow metal.
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The Australian market took its lead from US and European markets, which had fallen sharply overnight.
This followed the publication of a Morgan Stanley report that said both the US and Europe were on the brink of a second recession, which set off investor fears.
Ben Potter, research analyst at IG Markets, said: "we outperformed the US leads, which I suppose is a good thing".
"I think the US markets will probably break down to new lows in the next week or so, but whether or not the Australian market does we'll have to wait and see," he added.
The market extended its early losses on the back of weaker than expected earnings reports. Losses also accelerated as futures pointed to another day in the red on European markets and Wall Street when they open later today.
ANZ leads banks lower
Among the banks, ANZ was the worst performer, closing 92 cents, or 4.5 per cent, down at $19.50 despite its trading update which said underlying profit for the nine months to June 30 was up 16 per cent, and was optimistic about the Australian economy.
Westpac was 73 cents, or 3.6 per cent, weaker at $19.65, while National Australia Bank was 76 cents, or 3.3 per cent, lower at $22.40. Commonwealth Bank lost $1.36, or 2.9 per cent, to $45.96.
QBE Insurance said the sharp fall in its share price was expected as investors over-reacted to a big contraction in insurance margins but its underlying business remained strong. QBE was down 77 cents, or 5.6 per cent, at $12.98.
Qantas fell 7.05 per cent on news that aircraft engineers are planning work stoppages to protest against the airline's plans to cut jobs and set up new carriers in Asia.
Billabong shares punished
Surfwear retailer Billabong closed down $1.35, or 26.1 per cent, at $3.82 after posting an 18 per cent fall in full year profit.
Oil and gas producer Santos was 61 cents lower at $11.07 despite reporting a first half profit almost double the prior corresponding period.
Iron ore miner Fortescue Metals was down 30 cents, or 5 per cent, at $5.75 despite doubling its full year profit. Global miner BHP Billiton lost $1.60 to $37.50 and Rio Tinto was $3.92 lower at $69.42.
Shares in gold miner Newcrest Mining were up 88 cents at $39.54 as the gold price scaled another peak.
Preliminary national turnover was 2.41 billion shares worth $6.40 billion, with 187 stocks up, 951 down, and 267 steady.
Fear still lingers
Alex Moffatt, director at brokerage Joseph Palmer & Sons, said the global sell-off showed that fear still stalked global markets.
"When people worry that the whole world is going to hell in a handbasket for some reason, they believe selling good quality stocks is the answer whereas in fact it’s probably the time to look for opportunity.
"You don’t have to go mad about it but certainly cherry picking during these times is sound advice," he said.
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AAP, Reuters, with BusinessDay